If a person produces capital goods,she sacrifices the current production of consumer goods in order to obtain the capability of producing more goods and services in the future.

Question

Quizplus · Accepted Answer

This statement is true as capital goods are goods that are used to produce other goods and services. They are not typically used for immediate consumption, but rather for investment purposes to increase future production capabilities. Therefore, the production of capital goods requires sacrificing current production of consumer goods.

If a Person Produces Capital Goods,she Sacrifices the Current Production